I need to outline large titles to be output to a large format inkjet printer with a contour cut on a CNC router. I often need to create strokes then convert them to outlines or sometimes create offset paths so that I can use that layer as a through cut (contour guide/line). Sometimes it involves having a clipped image that is outlined and with an offset path for the cut line which may lie in the middle of the stroke/outline. So there could be several lines around an image. I need to separate all of these lines from each other so that I can put them on their own layers for production purposes. I would also need to separate the outlined stroke if I am clipping an image into the main text. Otherwise the image will clip out to the edge of the stroke. If I can separate all of this I can work much easier in layers. Is there a way to easily separate or disassociate each line from one another? I've tried the release compound paths groups etc. None of these seem to be effective. I have to go through a lot of steps and time to manually do these tasks.

All that can be done by a combination of applying multiple strokes and/or fills to a text object in the Appearance palette and applying live effects like Pathfinder Add and Offset Path to the various fills/strokes. Once the various elements look the way you want, Expand Appearance and sometimes Pathfinder Unite are used to "nail down" the results to discrete paths suitable for plotting.

You should familiarize yourself with those commands and features in the documentation. Post an image here (screenshot or sketch) of a specific example, with callouts labeling the intended purposes, etc., of each outline element.

clipping masks and compound paths have to have their content in the same layer (level of hierarchy).

In addition to what was already suggested:

For separating for production pruposes (cutting lines), you can create copies of the content and move it on different layers. One way to do that easily is selecting a path with the direct selection tool (white pointer) and in the layer's panel, hold Alt and drag the dot representing the selected content in a layer to another layer. Another way is to select a path with the same tool while holding Alt key down, copy, select the new layer in the layer's panel and paste in place, front, etc.l (Ctrl + F) - just make sure "Paste "Remembers Layers" is turned off from the popup menu on the layer's panel.

For the purpose of working easier with the content, there is not much you can do than expanding the layer containing it and select the paths from there. You can use Lock/Unlock or Hide/Unhide Others/All features with their hotkeys. You can also rename each path with names that will make it easier to identify and select. I whish Illustrator had a feature like selections sets that can select any arbitrary group of objects from different hierarchies but unfortunately nothing like that exists yet.

Ha, ha, thanks, How could I miss that? Please don't tell me that it has been there for all 22 years since I started using Illustrator. Time to check what's in all the menus and read the entire manual again - last time I did that was in the last century

Old habits die hard. Over the past 20+ years I have worked extensively with vector art. Much of it in app called Flexisign. Which has/had great features for working with vectors. This was before layers ever existed. So some of my thinking is still locked into old ways of working with a single layer. But what I liked about it was that I could easily separate, either by ungrouping or un-compounding, do what I needed to do then re-compound etc. Outlines, offset paths, were never locked or permanently attached to another component. Every path created was an actual hard vector line that I could easily manipulate. Strokes did not even exist so they were made with outlines, inlines, etc. In the illustration attached, I could have done all of this in seconds on one layer. Although I could move things forward or backwards and lock colors individually (precursor to layers I guess). I would start with the text and do multiple strokes or outlines as needed then separate them and group or compound as needed. I'm finding it difficult to separate some paths onto it's own so that I can eliminate or alter various paths.

Once I figured out how I could do it Illustrator, it does not appear that complex at all. But it takes a lot more steps than I am accustomed to. And I have to think in terms of layers more often to solve some of these issues. But as you'll see at the end, I still wish I could simply create a path separate it from the the rest of the artwork. I'm thinking that the Offset Path tool would be idea for making my cut line except that I cannot separate it.

Anyway, I created a sample of what I was trying to do. These are the steps I used to make my project. I have not had a chance yet to try out some of the suggestions, but I can see already that they use techniques I have never tried and in some cases even heard of. But wow, I am amazed at the help and suggestions. Thank you all.

I think I understand correctly, but if not, my apologies if this is response is off the mark.

I work extensively with CNC production as well, and am also "limited" to hard vector lines. You could separate each step of production with colors. What I mean is that for each step of production, pick an arbitrary color that will represent each individual step of production. To do this, click on go to the select menu, under "select same" to find all strokes (or fills) that have the same stroke color.

For example, while creating your artwork, assign a blue stroke or fill to the first step, Red to step 2, Green to step 3, etc. etc. Then when it comes time to actually separate things out, you can use the aforementioned select same technique and group them in a layer, or save them into a separate file.